2013-08-09

Philosophy of Accounting

None of the stuff below coheres with what the Wiki says, however - perhaps the difference between UK and US systems is at play here.

I was confused by Owners' Equity, and got a cross-referenced tutorial from two independent sources.
So it turns out...

- You list all your individual investor accounts in the General Ledger
- You list the sum of these in the Balance Sheet under Owners' Equity
- But there's no official place to show the workings/map of individual owners' equity to the sum of their equity

Somehow, I feel that this system is missing a step.
Someone suggested that there are auditors who are part of the system that keeps this stuff square.
But the documentation should speak for itself, so from the Knowledge Management point of view... I declare traditional accounting processes to be... FLAWED DAMNIT.
You want to keep the Balance Sheet clean, so you don't include subtotals for Owners' Equity, Inventory, etc. - ergo separate non-standard notes sheets for all of those calculations... I get it... non-standard across different companies. WHICH IS A FLAW. It must be a ploy to save the jobs of accountants.

Separation between management and financial accounting. It's bullshit. No wonder accountants are so dodgy about what it is they actually do. They're so redundant.
Separation of FA and MA just makes it harder to illustrate to employees what shareholders want. They should unify.

Sorry. xNTP in the house.
There should be a single system. Maybe I have to go to business school to do a thesis to fix this.
So free ah? Diu lah. I go play DoTA.

Accounting & Phenomenology - same old shit, just a different day 'assets' are the noumena, and 'how they are notated' is the phenomena.

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